Spain’s government has announced a EUR3.75bn plan to support the country’s automotive industry, which has taken a battering in the wake of the global COVID-19 outbreak. Spanish car buyers can select a new model and, as long as they scrap an older one, can then request a subsidy to offset some of the cost of buying the new vehicle.
To qualify, the vehicle being scrapped must be more than 10 years old and the new vehicle must emit less than 120g/km of CO2, or less than 155g/km for new vans. In addition, the vehicle must meet label A or B of Spain’s IDAE efficiency certification, or carry ‘ECO’ or ‘ZERO’ tags granted to low or zero-emissions vehicles. The maximum purchase price cannot exceed EUR35,000, although this rises to EUR45,000 if the buyer suffers from reduced mobility.
Go deeper with GlobalData
The subsidy itself is calculated based on the emissions of the car being bought, with more eco-friendly models receiving bigger grants to push more buyers towards the greenest models. Subsidies range from EUR400 for the least efficient new cars to EUR4,000 for zero-emissions models. In addition, the automaker will have to match the government’s contribution in most circumstances, doubling the available subsidy – however, this contribution will be capped at EUR1,000 for zero-emissions models, meaning the most any buyer could receive for buying one would be EUR5,000.
Critically, the scheme permits pre-registered vehicles to qualify for the subsidy unlike some rival European scrappage schemes. This is in response to the fact that dealers have been unable to sell new cars over the last few months so, as a result, have seen their inventories swell with unsold cars sat on forecourts.
Spain’s scheme joins a number of other incentive packages that have been announced in the EU to stimulate the auto industry. In the table below, we compare newly announced incentive packages by country across the EU, excluding schemes that were introduced before the COVID-19 outbreak.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData| Country | Incentive | Comment |
| Belgium | None announced | National industry body is calling on the government to provide financial incentives to stimulate vehicle sales |
| France | Announced an EUR8bn rescue plan for auto industry including EV incentives | Arguably the most generous incentive scheme announced in Europe so far. Buyers can receive up to EUR12,000 to incentivize the purchase of a new electric vehicle. This is made up of up to EUR5,000 for trading in an old diesel car and EUR7,000 off the price of a new BEV model |
| Germany | Announced an incentive package for EV sales | Has proposed to offer incentives of up to EUR6,000 on sales of new electric vehicles, along with a 3% cut to VAT on those purchases. This has proved controversial due to its exclusion of petrol and diesel models which make up 90% of German vehicle sales |
| Greece | Proposed an EV incentive scheme | The plan will cover roughly 25% of the purchase price of around 14,000 new EVs. Total incentive could reach around EUR10,000 per car and includes reduced parking charges and the option to offset charging costs against income |
| Italy | Proposed scrappage scheme | A scheme has been proposed that would see incentives of up to EUR4,000 being offered for the sale of new EURO 6 vehicles with an accompanying scrappage of any vehicle more than 10 years old |
| Netherlands | Introducing incentive scheme in July 2020 | The scheme offers incentives of up to EUR4,000 for buyers of new BEV models costing less than EUR45,000. In addition, used BEV models will also receive a EUR2,000 incentive to encourage their purchase |
| Spain | Vehicle scrappage scheme | Buyers of new cars can access subsidies to buy new cars providing they trade in a model >10yrs old to be scrapped. Manufacturers must match the incentive offered by the government to qualify. The largest total subsidies are offered on EVs which could see up to a EUR5,000 discount. |
– By Mike Vousden
